Unformatted text preview: 10. Baumol and Blinder, ch. 13, Discussion Question 4. 11. Explain how changes in the money supply affect output. Show all the steps. 12. Show how a fall in expected future income (which affects consumption) affects equilibrum output, the equilibrium price level, and the equilibrium interest rate. Don't worry about the effects over time, just show the short-run effects. Make sure to explain all the steps. 13. Baumol and Blinder, ch. 13, Discussion Question 6. 14. Explain the most important reason why the AD curve slopes down....
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This note was uploaded on 06/26/2009 for the course ECON 203 taught by Professor Al-sabea during the Spring '05 term at USC.
- Spring '05